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One rupee gained versus dollar as govt declares ‘revolutionary action plan’ Banks under fire for maintaining reserves g Forward booking to be banned, regulated g Regulators to keep eye on inter-bank market g Customs, ASF to check daily smuggling of $10-12m g Forex firms to get bank-like rebate to up remittances by $20bn g FIA to clamp down on over 30,000 unregistered currency dealers g
KARACHI
P
ISMAIL DILAWAR
AKISTANI rupee started recovering Tuesday and surged by Re 1 against the dollar on the local currency market as the federal government Monday took notice of the record appreciation in the value of the US currency trading above Rs 99 on the open market a day earlier. Realization of the foreign pledges is another source the government is pinning hope in as Islamabad expects the transfer of over $ 600 million US war reimbursements in various installments by next month. Also, a breakthrough is expected in the realization of $ 800 million under privatization proceeds of the PTCL as a team of the utility’s buyers from Etisalat is due today (Wednesday) to discuss the long-standing issue with local authorities. Tuesday saw the rupee gaining Re 1 and 25 paisas, respectively, on the open and inter-bank market where the dollar traded at Rs 98.50 and Rs 97.90 against Monday’s Rs 99.50 and Rs 98.15. Though government officials denied it, the market sources claimed that the central bank must have injected some liquidity to brake the historic upsurge of the greenback against the local currency. “Today the dollar depreciated by Re 1 and we by next week would see further downfall,” State Minister for Finance and Investment Saleem H. Mandviwala told reporters here at the office
of Board of Investment. Pointing finger at the “speculators”, the minister claimed to have devised an “action plan” based on a series of short-term remedial measures to bring the dollar down to below Rs 90 level “as soon as possible”. “I feel the dollar is over-valued in Pakistan,” said the minister. According to Mandviwala, the governmental steps include: Banning the dollar’s forward booking by importers through banks, curbing the smuggling of foreign currencies to foreign countries, like Dubai, mobilizing the Federal Intelligence Agency (FIA) against more than 30,000 unregistered foreign exchange companies operating in Pakistan, giving banks-like incentives to the money exchangers under the Pakistan Remittance Initiative (PRI) scheme, disallowing banks to maintain huge dollar reserves and constant monitoring of the inter-bank market. “We would regularly be monitoring the implementation of theses measures,” said the minister who intends to set an ambitious target of $ 20 billion for worker remittances from fiscal year 2014. Giving an account of Monday’s meeting at the State Bank, Mandviwala said in the
meeting none could find a reason for the dollar’s current surge, but all concluded was that the “media hype” did this. “Speculations on forex reserves and the government’s inability to meet its foreign financial obligations brought us this situation,” he said. Reacting to speculations, the minister said, the country would be left with reserves of 4-5 months in hand even if all its financial obligations were cleared. In Monday’s meeting, the minister said, when things were detailed some “quite disturbing” figures fronted the participants. “A lot” of foreign exchange, around $10-12 million, is illegally being exported abroad every day, he said adding that around 80 percent of the smuggled money was going to Dubai. “This has to be stopped. No currency should go abroad without the State Bank’s permission,” he said. If Pakistan Customs and the Airport Security Force failed to control the smuggling the government, he said, would engage a “third agency” for the task. “The central bank of Dubai would also be contacted to check the irregularities,” Mandviwala told journalists. The government also intends to clamp down on the commercial banks which, the
minister hinted, were holding billions of dollars in reserves which are to be used as export proceeds. “People retaining the dollar reserves or proceeds are creating liquidity crunch on the foreign exchange market,” he noted with concern. “They would have to surrender these dollars to the State Bank. The inter-bank (market) would be watched,” he said. Also, Mandviwala said, under consideration were the proposals to ban of forward booking of the dollar by the importers through banks. “Forward booking would be banned if it came out as a reason for dollar appreciation,” he replied a questioner adding that “no one would be allowed to take undue profit About unregistered currency dealers, the finance minister said over 30,000 illegal firms were “posing a failure” to the regulated exchange firms. He said the FIA would be moved in a crackdown against such unlawful dealers who were damaging the national economy. “The Competition Commission of Pakistan may also be involved,” the minister said. The minister also announced that from next week the money exchangers would start getting the bankslike incentives under the PRI scheme under which the banks are paid a 6-rupee rebate on the transactions of worker remittances through formal channel. “I would increase the present $ 13.5 billion remittance target to $ 20 billion from next year (FY14),” the minister declared adding “if we affectively implement these measures there is no reason the dollar would slid back to normal.”
Ship carrying 55000MT pSM coal arriveS g
Contracts for iron ore import finalised KARACHI STAFF REPORT
A spokesman of Pakistan Steel Mills (PSM) Tuesday said a ship carrying 55,000 metric tons of coal arrived at the Port Qasim Pakistan Steel Jettyfrom Australia. The unloading of coal has been started through the 4.2 Km conveyer belt from Port Qasim Jetty to Pakistan Steel raw material stockyard. He said that Government is taking keen interest for the revival of PS and the procurement of raw materials from the bailout package is successfully started by PSmanagement. He added that the shortage of raw materials is the major cause of all problems currently facing by PS and management is fully exercising to solve
this problem, as once the supply chain of raw materials is started then all problems will be solved. This coal was purchased from an Australian company through a long term contract with Pakistan Steel. Regarding iron ore availability PS spokesman said that, PS management achieved great success in iron making process during the shortage of imported iron ore with the utilization of local iron ore. The PSM spokesman said about 0.1 Million Tonns of local iron ore fromBaluchistan had been utilized by the PSM in this financial year. On the other hand, two contracts of imported iron ore are finalized and about 30000 metric Tonns of iron ore will reach PS in next 20 days. He added that many tenders for procurement
of iron ore are under process, after completion of all legal paper work process two
contracts of more than 100000 Metric tons of imported iron ore will be finalized.
Intel Pakistan Year in Review KARACHI STAFF REPORT
2012 was an exciting year for Intel in the Asia Pacific region. Technology innovation from the region made possible devices with an immersive and personal computing experience. Intel is proud to be a driving force behind this innovation. Creating and extending computing technology to connect and enrich lives has been Intel’s company vision. This year Intel made a leap forward by delivering next generation processors that changed the way people use and interact with computing technology from interactive signs, smart cars to smartphones, tablets, Ultrabooks™ and servers. Intel also continued its work to help transform Asia into a global powerhouse through a focus on education, encouraging the adoption of 21 st century skills and investing in Asian startups and entrepreneurs across the region. In 2012 Intel made smarter, faster and more secure computing possible through the integration of revolutionary technology. The first processors built on Intel’s innovative 22nm 3-D tri-gate transistors came to market with the launch of the 3 rd Gen Intel ® Core™ processor family. As a result Ultrabooks and other PC systems are now equipped with new technology that enables faster file transfers, super-quick start times, quick connections and greater security. Continuing Intel’s commitment to consumers to make computing easier, faster and more engaging will continue with the company’s planned 4 th Gen Intel ® Core™ processor family that is expected to reach consumers in 2013. “Technology companies and manufacturers will need to tap into the psyche of Asian consumers and respond with relevant and desirable products, now more than ever. Consumers will be inundated with mobile device options. A range of screen sizes, processing power and weights will enter the market in 2013 and manufacturers will rely on consumers’ choices to identify the most popular devices for future production,” Naveed Siraj, Country Manager, Intel Pakistan. In 2012, thirty-six teams from Asia were selected as finalists for the Intel International Science and Engineering Fair . This year the competition attracted more than 1,500 talented high school students from around the world to compete for over US$3 million in prizes and grants. The Intel ® Teach Program has also helped millions of teachers harness technology to improve learning in the classroom. Worldwide, Intel trained more than 10 million teachers and we have trained more than 2.6 million teachers across 13 APAC countries. In Pakistan, Intel has trained more than 325,000 teachers.
7-8% ECONOMIC GROWTH ACHIEVABLE IN PAKISTAN: BURKI KARACHI STAFF REPORT
There are a number of positive features in Pakistani economy, which if incorporated in the growth equation, can pull the country back from economic stagnation and set it on a plane of high and sustainable rate of GDP growth. Pakistan, if managed properly, can achieve a growth rate of 7 to 8 percent in the next three to five years. Shahid Javed Burki, Renowned Economist, former VP World Bank and former Caretaker Finance Minister of Pakistan, expressed these views while presenting his Macroeconomic Address during the 13th MAP Convention organized here today by the Management Association of Pakistan. Under the theme of this year’s MAP Convention “Leadership, People, Innovation”, speakers from across the world
gathered to discuss growing market needs and measures to overcome challenges through strong leadership, human capital management and innovation. Terrabiz is the official conference producer of the convention. Shahid Javed Burki highlighted factors that should become part of
the growth framework being developed by the Planning Commission that include: agriculture with a high growth potential; medium size companies with the skill base to become international supply chains; opening up of the economy to India; an enviable geographic space; rap-
idly growing cities that could become the engines of economic growth; the entry of a million well trained and skilled women into the economy every year; and large diasporas to play important roles in the development of the homeland. He pointed out that 2012-13 is likely
to be better than the year before but it does not mean that the economy is finally out of woods. He said: “In 2008-12, Pakistan was engaged in making a transition from a controlled to a reasonably open political system. The positive side of this development is that a durable and representative political system is coming into being in which people will have a voice. One of the more important reasons for the economy’s indifferent performance was the poor quality of governance that was on offer. There are ways of improving governance and some of these are being factored into the development of institutions of accountability.” Earlier, Kamal Chinoy, President MAP while delivering the welcome note said, “The aim of this convention is to provide a platform and opportunity for corporate stakeholders to analyze key trends and prospects in the region in general and Pakistan in particular.
Wednesday, 19 December, 2012